Bill Text: NC H1010 | 2017-2018 | Regular Session | Introduced
Bill Title: Build NC Bond Act
Spectrum: Partisan Bill (Republican 7-0)
Status: (Introduced - Dead) 2018-06-07 - Re-ref Com On Rules, Calendar, and Operations of the House [H1010 Detail]
Download: North_Carolina-2017-H1010-Introduced.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
H D
HOUSE BILL DRH10429-MLfz-205A
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Short Title: Build NC Bond Act. |
(Public) |
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Sponsors: |
Representatives Torbett, Iler, Presnell, and Shepard (Primary Sponsors). |
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Referred to: |
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A BILL TO BE ENTITLED
AN ACT to enact the Build nc bond act of 2018, as recommended by the House Select Committee on Strategic Transportation Planning and Long Term Funding Solutions.
The General Assembly of North Carolina enacts:
SECTION 1. Short Title. – This act shall be known as the "Build NC Bond Act of 2018."
SECTION 2. G.S. 142‑82 reads as rewritten:
"§ 142‑82. Definitions.
The following definitions apply in this Article:
…
(2a) Build NC Bonds. – Special indebtedness issued to finance Build NC Projects, with the Build NC Net Proceeds of such special indebtedness used in accordance with both of the following requirements, measured in the aggregate for all issues in successive periods of 10 fiscal years each, with the first such period beginning with the 2019‑2020 fiscal year:
a. Within two percent (2%) of fifty percent (50%) of the Build NC Net Proceeds during such period used for Division Need Projects in accordance with the requirements of Article 14B of Chapter 136 of the General Statutes.
b. The remainder of the Build NC Net Proceeds during such period used for Regional Impact Projects in accordance with the requirements of Article 14B of Chapter 136 of the General Statutes.
(2b) Build NC Net Proceeds. – The proceeds of an issue of Build NC Bonds net of deposits for the costs described in sub‑subdivisions d., e., and f. of subdivision (6) of this section.
(2c) Build NC Project. – A capital facility identified and selected for financing with Build NC Bonds under this Article by the process set forth in Article 14B of Chapter 136 of the General Statutes.
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SECTION 3. Article 9 of Chapter 142 of the General Statutes is amended by adding a new section to read:
"§ 142‑97. Additional provisions with respect to Build NC Bonds.
The following requirements and limitations apply to the issuance and sale of Build NC Bonds:
(1) Subject to appropriation by the General Assembly, funds from the Highway Trust Fund shall be the source for repayment of special indebtedness resulting from the sale of Build NC Bonds.
(2) The State Treasurer shall not issue any Build NC Bonds unless (i) the State Treasurer recommends the issuance of the Build NC Bonds and (ii) the State Treasurer has made a determination that all of the following requirements have been or shall be met:
a. The Department of Transportation's average combined month‑end cash balance required under G.S. 143C‑6‑11(f) for the first 3 months in the calendar year prior to the date of determination is equal to or less than twenty percent (20%) of the total expenditures from the Highway Fund and Highway Trust Fund for the most recent complete fiscal year. In calculating the total expenditures from the Highway Fund and Highway Trust Fund under this sub‑subdivision, any transfers to the General Fund shall be excluded.
b. The total amount of Build NC Bonds outstanding after such issuance will not cause the recommended transportation debt target established by the Debt Affordability Advisory Committee in accordance with G.S. 142‑101 to be exceeded.
c. At least six months prior to the expected date of the Build NC Bond issuance, the Department of Transportation:
1. Consulted with the State Treasurer about the proposed Build NC Bond issuance.
2. Consulted with the Joint Legislative Transportation Oversight Committee and the Joint Legislative Commission on Governmental Operations to provide details of the proposed issuance, including (i) the total amount of the Build NC Bonds that will be issued, (ii) the estimated amount of the debt service payments, and (iii) the estimated amount of debt capacity that would be remaining after the issuance.
(3) Except as otherwise provided in subdivision (7) of this subsection, the total amount of special indebtedness resulting from the sale of Build NC Bonds shall not exceed three billion dollars ($3,000,000,000).
(4) Except as otherwise provided in subdivision (7) of this subsection, each individual issuance of Build NC Bonds is limited to no more than three hundred million dollars ($300,000,000) in each fiscal year.
(5) The Department of Transportation may not use the proceeds realized from the sale of Build NC Bonds for a nonhighway project or a project utilizing tolling pursuant to the authority set forth in subdivision (39) or (39a) of G.S. 136‑18.
(6) For purposes of satisfying the requirements of G.S. 142‑15.17, Build NC Projects constitute projects as to which the General Assembly has enacted legislation expressly approving the use of a State‑supported financing arrangement.
(7) The restrictions set forth in sub‑subdivision a. of subdivision (2) of this section and subdivisions (3) and (4) of this subsection do not apply to Build NC Bonds that are refunding bonds meeting the requirements set forth in G.S. 142‑29.5.
(8) The provisions of subsection (b) of G.S. 142‑83 do not apply to Build NC Bonds, nor shall Build NC Bonds be counted for the purposes of that subsection in limiting the issuance of other debt.
(9) The provisions of subsection (e) of G.S. 142‑84 do not apply to Build NC Bonds."
SECTION 4. G.S. 142‑89(a) reads as rewritten:
"(a) Terms and
Conditions. – Bonds or notes may bear any dates; may be serial or term bonds or
notes, or any combination of these; may mature in any amounts and at any times,
not exceeding 15 years from their dates for Build NC Bonds and 40 years
from their dates;dates for all other bonds and notes; may be
payable at any places, either within or without the United States, in any coin
or currency of the United States that at the time of payment is legal tender
for payment of public and private debts; may bear interest at any rates, which
may vary from time to time; and may be made redeemable before maturity, at the
option of the State or otherwise as may be provided by the State, at any
prices, including a price greater than the face amount of the bonds or notes,
and under any terms and conditions, all as may be determined by the State
Treasurer, by and with the consent of the Council of State."
SECTION 5. The State Treasurer, in consultation with the Department of Transportation, shall develop and implement a debt management policy to guide the Department's practices in regards to issuing Build NC Bonds, as defined in G.S. 142‑82(2a), as enacted in Section 2 of this act. By July 1, 2019, the State Treasurer shall submit a report to the Joint Legislative Transportation Oversight Committee detailing the debt management plan developed in accordance with this subsection.
SECTION 6. This act is effective when it becomes law.
